MANILA, Philippines — The Energy Regulatory Commission (ERC) on Tuesday, April 28, 2026, defended the recent spike in electricity bills, clarifying that the additional charges causing “bill shock” among Meralco consumers are mandatory “pass-through costs” required by existing Philippine laws.
The regulator’s statement comes as consumers expressed outrage over rising monthly statements, which have been compounded by a recent P0.1099/kWh rate increase to recover costs for a new gas-plant operation.
The ERC emphasized that distribution utilities like Meralco do not profit from these specific line items; they merely act as collecting agents for the government.
- Lifeline Subsidy: Mandated by the EPIRA Law (R.A. 9136), this fund supports marginalized consumers and 4Ps beneficiaries. Those using less than 50 kWh/month receive a 100% discount, funded by other consumers.
- Senior Citizen Subsidy: Under the Expanded Senior Citizens Act of 2010, a 5% discount is provided to eligible elders (consuming <100 kWh/month).
- Renewable Energy Allowances: Items like the Fit-All (Feed-in Tariff) and green energy auction allowances are collected to incentivize investments in solar, wind, and other clean energy sources.
- Universal Charges: These funds are used for missionary electrification (powering remote islands), watershed rehabilitation, and servicing the debts of the National Power Corp.
While many of these charges have been in place for decades, new factors are contributing to the current price hike:
- Gas Plant Recovery: The ERC recently approved Meralco’s petition to recover P4 billion for the Excellent Energy Resources Inc. gas plant. This will result in an additional P0.1099/kWh charge starting in September 2026.
- Proposed Subsidy Expansion: Congress is currently debating proposals to increase the senior citizen discount from 5% to 15% and raise the consumption threshold to 200 kWh. Industry groups like Philreca have expressed concern that this will further increase the “burden” on non-senior consumers.
In light of the price shocks exacerbated by the ongoing Middle East conflict, the executive and legislative branches are preparing intervention measures:
- The “UPLIFT” Law: President Marcos is urging Congress to pass the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) law. This would allow the government to tap unreleased budget appropriations and savings to provide immediate relief.
- Senate Oversight: Senator Sherwin Gatchalian announced that the Senate’s ad hoc PROTECT committee will tackle the power bill shock in a hearing on Wednesday to ensure “timely and effective crisis strategy.”
The ERC maintains that it is “diligently implementing” the laws passed by Congress and ensures that utilities only recover “just and reasonable costs.” However, for many Filipino households already struggling with a record-low peso and high inflation, the legal justification offers little comfort against the reality of rising utility costs.